Question

The shareholders’ equity section of Mountvale Associates is as follows:


The following selected transactions occurred during 2015:
1. 1/1/15: A 20 percent stock dividend was issued. The fair market value of the stock at the time was $3 per share.
2. 8/25/15: Land was purchased in exchange for 6,000 shares of common stock. The fair market value of the stock was $3 per share.
3. 12/31/15: Common stock was issued for cash.

REQUIRED:
How many shares of common stock did Mountvale issue on December 31, 2015, and how much cash did the issuance generate? Show all calculations clearly.


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  • CreatedAugust 19, 2014
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